[The following information applies to the questions displayed below.] Ray and Matlas own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Matias each works full time (over 1,000 hours per year) managing Alpine. Alpine's liabilities (at both the beginning and end of the year) consist of $1,700,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Matlas each had a tax basis of $250,000 in his respective LLC Interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary business losses for the current year totaled $640,000, and neither member is involved in other activities that generate passive Income. Note: Leave no answer blank. Enter zero if applicable. blem 09-79 Part a (Algo) ow much of each member's loss is suspended because of the tax-basis limitation? Loss suspended Ray Matias

[The following information applies to the questions displayed below.] Ray and Matlas own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Matias each works full time (over 1,000 hours per year) managing Alpine. Alpine's liabilities (at both the beginning and end of the year) consist of $1,700,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Matlas each had a tax basis of $250,000 in his respective LLC Interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary business losses for the current year totaled $640,000, and neither member is involved in other activities that generate passive Income. Note: Leave no answer blank. Enter zero if applicable. blem 09-79 Part a (Algo) ow much of each member's loss is suspended because of the tax-basis limitation? Loss suspended Ray Matias

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 61P

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[The following information applies to the questions displayed below] Ray and Matias own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Matias each work full time (over 1,000 hours per year) managing Alpine. Alpine's liabilities (at both the beginning and end of the year) consist of $1,540,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of $250,000 in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary business losses for the current year totaled $608,000, and neither member is involved in other activities that generate passive income Note: Leave no answer blank. Enter zero if applicable. Problem 20-79 Part b (Algo) b. How much of each member's loss is suspended because of the at-risk limitation? Loss suspended Ray Matias
Required information [The following information applies to the questions displayed below.] Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra *Assume the §179 property placed in service limitation does not apply. b. What are Georgio's separately stated items for the year? Description Separately Stated Items on Schedule K-1: $ 92,000 19,500 (48,000) (6,650) (17,100) (13,900) (4,500) 7,000 5,250 (5,700) Total Amount Allocated to Georgio
Required Information [The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation. Sales revenue Cost of goods sold Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Ordinary Income Amount Year 1 $ 335,000 (42,000) (40,000) (30,000) (20,000) (30,000) 12,000 1,808 Allocated to Julio 0 $ 186,800 $ 24,000 a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $240,000 of qualified property (unadjusted basis). Year 2 $ 465,000…
! Required information [The following information applies to the questions displayed below.] Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $10,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $900 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. Note: Leave no answer blank. Enter zero if applicable. b. Flower distributed $6,000 on February 14 and $30,000 on August 1. What total amount of dividends will Tiny and Tim report? Note: Do not round intermediate calculations. Total dividends Answer is complete but not entirely correct. February 14 August 1 6,000 $ 30,000
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land Totals Liabilities and capital: Nonrecourse liabilities Lance" Robert Totals Basis $ 130,000 180,000 210,000 $ 520,000 Tax basis $ 190,000 165,000 165,000 $ 520,000 Dave Fair Market Value *Assume that Lance's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. (Leave no answer blank. Enter zero if applicable.) Lance a. Compute and characterize any gain or loss Dave may have to recognize as a result of his admission to Cirque Capital. Gain or loss recognized as Ordinary income $ 130,000 207,000 320,000 $ 657,000 b.…
Required information [The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments. Land Totals Liabilities and capital: Nonrecourse liabilities Lance* Robert* Totals Tax basis Dave Basis Lance $ 220,000 300,000 100,000 $ 620,000 Robert $ 200,000 210,000 210,000 $ 620,000 *Assume that Lance's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. (Leave no answer blank. Enter zero if applicable.) Fair Market Value b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his…
Required information [The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Fair Market Value Basis Assets: Cash $ 160,000 Investments $ 160,000 290,000 100,000 314,000 200,000 Land Totals $ 550,000 $ 674,000 Liabilities and capital: Nonrecourse liabilities $ 180,000 $ 180,000 Lance* 247,000 185,000 185,000 247,000 Robert* Totals $ 550,000 $ 674,000 *Assume that Lance's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. (Leave no answer blank. Enter zero if applicable.) a. Compute and characterize any gain or loss Dave may have…
Required information [The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $14,000 from Falcons Corporation. \table[[\table[[Falcons Corporation (an S Corporati],[Income Statement],[December 31 , Year 1 and Year 2]],Year 1,Year 2],[\table[[Sales revenue],[Cost of goods sold],[Salary to owners Julio and Milania],[Employee wages],[Depreciation expense],[Section 179 expense],[Interest income (related to business income)],[Municipal bond income],[Government fines]],\table[[305,000],[(43,000)
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land Totals $ 480,000 Liabilities and capital: Nonrecourse liabilities Tatsuki* Robert* Totals "Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable. $ 120,000 180,000 180,000 Basis $ 120,000 110,000 250,000 Fair Market Value $ 120,000 140,000 380,000 $ 640,000 $ 120,000 260,000 260,000 $ 480,000 $ 640,000 e. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest if Dave receives only a profits…
! Required information [The following information applies to the questions displayed below.] Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra *Assume the §179 property placed in service limitation does not apply. a. How much ordinary business income (loss) is allocated to Georgio for the year? Description Sales revenue Ordinary Business Income $ 92,000 19,500 (48,000) (6,650) (17,100) (13,900) (4,500) 7,000 5,250 (5,700) Total Amount Allocated to Georgio
! Required information [The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land cana Totals Liabilities and capital: Nonrecourse liabilities Tatsuki* Robert* Totals Tax basis $ Dave 0 Basis *Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable. Tatsuki $ 150,000 200,000 150,000 $ 500,000 b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest. Robert $ 100,000 200,000 200,000 $…
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land Basis $ 260,000 300,000 200,000 Totals $ 760,000 Liabilities and capital: $ 180,000 290,000 290,000 $ 760,000 Fair Market Value $ 260,000 322,000 390,000 $ 972,000 $ 180,000 396,000 396,000 Nonrecourse liabilities Tatsuki* Robert* Totals $ 972,000 *Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable.